**Exhibit 12.1**

 

**ENTERPRISE GP HOLDINGS L.P.**

**COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES**

**(Dollars in thousands)**

 
|                                                 |                                                 |                                   |                            | **For the Year Ended December 31,** |
|------------------------------------------------------|------------------------------------------------------|----------------------------------------|---------------------------------|-------------------------------------|
|                                                 |                                                 |                                   |                            | **2005**                            | **2004** | **2003** | **2002** | **2001** |
| Consolidated net income                              |                                                 | $    55,276        | $    29,778 | $    15,861     | $      7,351 | $      5,460 |
| Add:                                                 | Minority interest expense                            | 353,642                                | 229,607                         | 91,079                              | 89,956 | 238,909 |
|                                                 |                                                 | Provision for taxes                    | 8,362                           | 3,761                               | 5,293 | 1,634 |   |
| Less:                                                | Equity in (income) loss of unconsolidated affiliates | (14,548)                               | (52,787)                        | 13,960                              | (35,253) | (25,358) |
| Consolidated pre-tax income before minority interest |                                                 |                                   |                            |                                |   |
|                                                 | and equity earnings from unconsolidated affiliates   | 402,732                                | 210,359                         | 126,193                             | 63,688 | 219,011 |
| Add:                                                 | Fixed charges                                        |                                   | 283,374                         | 174,312                             | 151,338 | 111,141 | 63,172 |
|                                                 |                                                 | Amortization of capitalized interest   | 1,644                           | 974                                 | 579 | 363 | 217 |
|                                                 |                                                 | Distributed income of equity investees | 56,058                          | 68,027                              | 31,882 | 57,662 | 45,054 |
|                                                 |                                                 | Subtotal                               |                            | 743,808                             | 453,672 | 309,992 | 232,854 | 327,454 |
| Less:                                                | Interest capitalized                                 | (22,046)                               | (2,766)                         | (1,595)                             | (1,083) | (2,946) |
|                                                 |                                                 | Minority interest                      |                            | (2,863)                             | (6,586) | (79) | (927) |   |
| Total earnings                                       |                                                 | $     718,899                          | $     444,320                   | $    308,318                        | $      230,844 | $    324,508 |
| Fixed charges:                                       |                                                 |                                   |                            |                                |   |   |
|                                                 |                                                 | Interest expense                       |                            | $     249,002                       | $     161,589 | $     140,806 | $      101,580 | $        52,456 |
|                                                 |                                                 | Capitalized interest                   | 22,046                          | 2,766                               | 1,595 | 1,083 | 2,946 |
|                                                 |                                                 | Interest portion of rental expense     | 12,326                          | 9,957                               | 8,937 | 8,478 | 7,770 |
|                                                 |                                                 | Total                                  |                            | $     283,374                       | $     174,312 | $     151,338 | $      111,141 | $        63,172 |
| **Ratio of earnings to fixed charges**               | 2.54x                                                | 2.55x                                  | 2.04x                           | 2.08x                               | 5.14x |

 

 

These computations take into account our consolidated operations and the distributed income from our equity method investees.  For purposes of these calculations, “earnings” is the amount resulting from adding and subtracting the following items:

 

Add the following, as applicable: (i) consolidated pre-tax income before minority interest expense and income or loss from equity investees; (ii) fixed charges; (iii) amortization of capitalized interest; (iv) distributed income of equity investees; and (v) our share of pre-tax losses of equity investees for which charges arising from guarantees are included in fixed charges. From the subtotal of the added items, subtract the following, as applicable: (i) interest capitalized; (ii) preference security dividend requirements of consolidated subsidiaries; and (iii) minority interest in pre-tax income of subsidiaries that have not incurred fixed charges.

 

The term “fixed charges” means the sum of the following:  interest expensed and capitalized; amortized premiums, discounts and capitalized expenses related to indebtedness; an estimate of interest within rental expenses; and preference dividend requirements of consolidated subsidiaries.